Most individuals start their adult working life as an employee because the traditional education system trains us to get good grades so that you can get a job and live happily ever after.  The system encourages individuals to pursue any job, typically a high paying one so they can become a perpetual consumer, not become wealthy.  Unfortunately, there is no shortage of examples of how this has not been an effective strategy for happiness or prosperity.

In fact, with this current plan, approximately 3 percent of the population will be wealthy after working 40+ years.  That means the remaining 97 percent have followed the wrong plan.

If you are relying on your current job to build your wealth, a plan is required to make this create wealth. You cannot follow the traditional model. Why?

Because your job is not meant to make you wealthy.

It is YOUR responsibility to become wealthy, not your employer.  This means you must pursue the road less traveled and take deliberate steps to exit the rat race.

Two Reasons Why Your Job Will Not Make You Wealthy

There are at least two reasons why your job is not meant to make you wealthy –

• Salaries are an expense
• Employees are taxed at the highest rate

Businesses are created to make money or they would not be in business for long.

Your employer will pay you for the value you bring to the company, but their goal is to receive maximum value for the least amount of compensation.

The higher your salary, the higher your expense to the company.   For example, when the company is looking to find ‘efficiencies’ they often look at the higher paid positions.  This is why senior leaders are typically downsized first and replaced by cheaper labor.

In addition to employee salaries being an expense, employees are taxed the highest rate.

In fact, the federal tax system promotes entrepreneurship by offering multiple tax incentives to business owners.  This is obvious in the new Federal tax plan under the Trump administration.  As an example, Amazon, one of the most profitable businesses in the world with $11 Billion in revenue, will pay no federal income tax for the second year in a row.

Unlike companies where they enjoy significant tax breaks, employees are taxed at the highest rate and are only eligible for a few tax deductions which means there is less disposable income to make investments.

However, all is not lost.

While your job is not created to make you wealthy, you can leverage your job to build wealth if you are intentional.

Here are 4 actions you can take to maximize your employee experience to build wealth.

Develop New and Relevant Skills to Build Wealth

You are your greatest asset.

You are responsible for the level of value that you provide to your company.  Why not maximize your value, by learning additional skills?

Skills pay the bills.

It is in YOUR best interest to actively increase your skills not only to deliver the best service to your company but to become more valuable to the marketplace.  Because when a company decides to downsize, they could eliminate your position, but they cannot eliminate your knowledge and skills.

If necessary, you could do as LeBron James and take your talents to South Beach…or at least to another company or better yet, your own business.

As a result, you should view new assignments as a chance to increase your value.  Change your perspective and see the benefit of growing outside of your normal daily operations.

Ask, “What can I learn today?” or “How can I get better at this?”

Companies may also offer paid and free training opportunities.  Sign up for them.  Build new skills and sharpen others.

With your new skills, you can multiply your income by:

• Teaching individuals how to do what you do
• Developing a Consulting Business to advise other organizations on best practices
• Creating a Service Based Organization where you outsource your skills

Honestly, the opportunities are endless once you develop the skill.  The best part is no one can take it away from you.

Action: Identify a marketable skill and develop AT LEAST one new skill annually.  Rinse and repeat.

Expand Your Network to Build Wealth

Work is probably one of the easiest ways to learn from those that do not look like you.  Typically, outside of the office, your network consists of people that share your same values and enjoy things that you like. Your free time is unrestricted so it is natural to spend time with those in your comfort zone.

However, at work, you can easily interact with people of different ages, races, and genders.  This gives you an opportunity to learn how other people think and view the world.  You also have the option to leverage their expertise to learn a new skill and share your expertise with them as well.

Building a solid network is valuable when you are developing your skills or looking for new opportunities.

But how does this help me build wealth?

Building the right network can expose you to things that you never would have learned from your existing network.  Additionally, you have the opportunity to partner with someone who can connect you to your next life-changing experience.

You’ve heard the statement that your network is your net worth, right? It’s true.

Be intentional about learning from not only those who look like you but those that do not as well.

Action: Schedule a coffee chat with a senior leader, peer, and someone in a junior position that you do not frequently interact with and ask how you can add value to them.  Remember you must give first, then receive.

Maximize Your Benefits to Build Wealth

Most employees only consider their salary when evaluating a job offer instead of the total compensation package.  Consequently, employees do not take full advantage of their benefits.

Outside of open enrollment season, employees are rarely exposed to a company’s available benefits. That means you must be proactive and research them.

Two benefits that you may have heard about but are not you maximizing are retirement plans and health insurance plans.

Retirement Plans

If your company offers a 401K or 403B plan, they likely offer an employer match to incentivize employees to contribute to their retirement plan.

The employer match is when the company will match a percentage of what you contribute to your retirement plan.  For example, a company may contribute 5 percent of your salary if you contribute 5 percent to your retirement.  You double your money.  Where else can you contribute $100 and someone gives you $100?

Do not discount this opportunity to increase your retirement fund.  If you can contribute more, and it is a part of your investment strategy, do so.  But at a minimum, contribute the match.

About 20 percent of employees who have an employer matching program do not contribute enough for the match.  If possible, do not fall into this category. Do what you must do receive at least the matching funds.

Health Care Plans

If your company offers healthcare, make it a priority to understand your options to not only maximize your benefits coverage but to take advantage of the tax savings.

First, select the coverage that best supports you and your family needs for the year.  Next, determine how to reduce your tax liability by contributing to either a Health Savings Account or Flexible Spending Account. These accounts allow you to save money for medical expenses tax-free.

A little information about these savings accounts:

A health savings account (HSA) can only be used when you select a high deductible healthcare plan and the maximum amount you can contribute per year is $3500 for a single person and $7000 for a family. The advantage for this account is that you can roll over this amount to the next year if needed.

Like the HSA, a flexible spending account (FSA) is a savings account for medical expenses but you must use all the money that year or you will lose it.  It can be used with all health plans except for the high deductible plan.  The maximum contribution limit is $2700.

Child Care

Some companies also offer a FSA for child care expenses up to $5000.  This can greatly offset your tax liability especially when you would be paying for childcare anyway.  Set aside the funding upfront to maximize tax savings.

Other Benefits

In addition to your health benefits and retirement plans, your company may offer other benefits as well such as discounted gym membership and additional insurance packages for disability, long term care, and life insurance. Some companies may also offer educational benefits such as student loan repayment, discounted tuition programs for specific degrees, or paid certifications.

Take advantage of as many as you can.

Action: Review your company’s benefits package and contact Human Resources to clarify the benefits if you have questions.

Use Your Paycheck to Buy Other Assets

This one may seem self-explanatory, but you would be surprised how many people do not believe they have an option to choose a life outside their job.

If you are working in a job that is not your passion, you do not have to stay there.  You have a few options:

• Resign and find another job
• Stay and suffer in silence or out loud
• Plan your exit strategy by using your resources to create wealth

Most people are not likely to up and quit their job without resources or a backup plan.  It is possible to do so, but it is not recommended unless you have a strong support system that can help you transition.

However, you can reduce your risk by having an exit strategy.  You can use your resources to start your passion project on the side or invest in income producing assets, such as real estate,  that will sustain your lifestyle outside of a job.

This strategy is 100% in your control.

While you are working you can actively take steps to become wealthy.  Remember your job is not intended to make you wealthy, but you can make it a reality.

You must avoid the consumerism lifestyle of always buying the latest gadget and instead focus on becoming a producer and providing more value.  You should ask:

• What can I create or invest in that can benefits others?

Once you start to shift your mindset to production, your income will shift as well.

This means you need to get a handle on your finances and start directing your money on where to go. You have to know what you are spending your money on and determine how much value you are receiving for your exchange. Before your next purchase, ask how much do I value this item?

Once you learn how to manage your current resources, educate yourself on how to invest in income producing assets.  Learn how to purchase real estate, invest in stocks/mutual funds/exchange-traded funds, or how to turn your passion into a business.

Action: Read this article to determine what your financial freedom number is.  Switch from a consumer mindset and think about you can leverage your skills to produce greater value for others.  Focus on what can I give.

Final Thoughts

While your job is not intended to make you wealthy, you have the final say by taking the road less traveled.

Create a path where your job not only sustains your current lifestyle but funds your dreams as well.

Maximize your job to create wealth.

That’s getting your FINANCES ON POINT.